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What is NSCarbolex™ Neutral?— Steel products essential for realizing a decarbonized society —
NSCarbloex Neutral is the low-CO2 steel products to which part of the amount of total greenhouse gas including CO2 (“CO2”) emissions savings in Nippon Steel’s product manufacturing processes (“NSC Total CO2 Emissions Savings”) are allocated through the application of the mass balance approach.
As the demand for decarbonization in society continues to grow, we believe that accelerating efforts towards decarbonization will enhance the competitiveness of our customers.
Nippon Steel aims to contribute our customers in their decarbonization by establishing a stable supply system for NSCarbolex Neutral at an early stage.
4 Features of NSCarbolex™ Neutral
Feature 1Utilize actual CO2 emissions savings through Nippon Steel's own transformative actions and improvements in its product manufacturing processes
NSCarbolex Neutral is the steel products to which part of the NSC Total CO2 Emissions Savings achieved through the CO2 reduction project of Nippon Steel as the countermeasures with additionality*1are allocated.
Feature 2Obtain assurance from an independent third-party organization and issue a certificate
Nippon Steel has obtained a limited assurance from the third-party organization and issues a certificate*2, in relation to the NSC Total CO2 Emissions Savings for the product, ensuring impartiality.
(Nippon Steel has obtained a limited assurance from the third-party organization in relation to the NSC Total CO2 Emissions Savings for the product achieved through its countermeasures with additionality and the appropriateness of its operation of the mass balance approach.)
Feature 3Contribute to reduction of Scope 3 CO2 emissions of customer
Nippon Steel believes that NSC Total CO2 Emissions Savings for the product described in the certificate can be reported as a deduction from Scope 3 GHG emissions of the customers*3*4.
Feature 4Applicable to all steel products manufactured by Nippon Steel
All steel (including titanium) products manufactured by Nippon Steel can be supplied as NSCarbolex Neutral. Furthermore, these products are available with the same quality as the ones the customers are already using.
*1 “Countermeasures with additionality” means the measures that have actually resulted in a reduction of Scope1+2 CO2 emissions at Nippon steel.
*2 The NSC Total CO2 Emissions Savings for the product (and the accompanying NSCarbolex Neutral Certificate) does not represent a carbon credit and may not be transferred or sold to any third party.
*3 The NSC Total CO2 Emissions Savings for the product may not be used for any purpose other than reporting a reduction from the Scope 3 CO2 emissions of the customer.
*4 This interpretation is based on the information available as of the date of Oct 4th ,2023. Such interpretation might change from time to time due to various policies, regulations, legislations, scientific updates, or other factors. Although Nippon Steel has given attention to correctness of the interpretation, it is solely intended for informational purposes, and Nippon Steel is not liable for any consequence of the reliance on the interpretation by the Customer or any other person (including, but not limited to, any loss, damage, disadvantage, injury, additional cost, consequent loss, or opportunity loss, either directly or indirectly).
What is mass balance approach?
It is not easy for the steel industry to achieve decarbonization, and it is expected that it will take a long time to develop decarbonization technology.
In the meanwhile, Nippon Steel is able to deliver the steel products to which actual CO2 emissions savings through Nippon Steel's transformative actions and improvements in its product manufacturing processes tracked on project-by-project basis are allocated through the application of the mass balance approach *5. (See Chart 1 and Chart 2).
*5 Nippon Steel allocates part of the NSC Total CO2 Emissions Savings to the product in accordance with the “Guidelines for green steel upon the application of the mass balance approach,” as published by The Japan Iron and Steel Federation. Nippon Steel has obtained a limited assurance from JIC Quality Assurance Ltd. (“JICQA”) regarding the appropriateness of its operation of the mass balance approach in accordance with the said Guidelines.
Independent Assurance Report issued by JICQA is bellow.